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Author: Admin | 2025-04-28
The parties involved and their activities. A Cryptoassets Manual published in March 2021 details what tax liabilities cryptocurrency holders have and what records they must keep.Cryptocurrency exchangesCryptocurrency exchanges are legal in the UK, but they have to be registered with the FCA. From January 10, 2020, all crypto firms in the UK (including recognized cryptocurrency exchanges and advisers) that have a presence in the UK or provide services to UK resident clients compulsorily have to register with the FCA. AML/CFT reporting and protection of customer assets from theft and deterioration of value is a requirement for every registered cryptoservice provider. Future legislationsThe UK, despite having left the EU, will still continue to probably follow suit as legislations are implemented in the future by the body. This pertains to regulatory policies for CFT and AML. In January 2021, the UK Treasury stated that it would like to bring some cryptocurrencies under the umbrella of financial promotions regulation while it will continue to take a broader approach to other virtual currencies. The European UnionConcerning cryptocurrenciesCryptocurrencies are legal in the EU, though not legal tender in any member state. Member states may be prevented from launching their own cryptocurrencies if the states are backed by the EU. When dealing in cryptocurrencies people were not covered by the EU’s consumer protection rules, but that changed in March 2022. MEPs agreed on a set of guidelines for the supervision, consumer protection, and the environmental sustainability of bitcoins. The environmental concern for bitcoins comes from the fact that bitcoin mining consumes a lot of power, in fact a single bitcoin transaction is expected to use up as much power as would be by a typical American household for six weeks.Cryptocurrency exchangesIn the EU, cryptocurrencies are classified as Qualified Financial Instruments (QFIs). All investment firms and banks
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